ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of December 22, 2020 No. 939

About modification of the Regulations on accounting treatment and depreciation of fixed assets for the purpose of the taxation approved by the Order of the Government No. 704/2019

Based on part (17) article 26-1 of the Tax Code No. 1163/1997 (repeated publication: The official monitor of the Republic of Moldova, special release of February 8, 2007), with subsequent changes, DECIDES: the Government

1. In the Regulations on accounting treatment and depreciations of fixed assets for the purpose of the taxation approved by the Order of the Government No. 704/2019 (Official monitor of the Republic of Moldova, 2019, Art. No. 400-406, 1041), to make the following changes:

Item 2 to add 1) with the paragraph of the following content:

"For the companies which acquired this right during tax period (for example, in case of transition from special tax regime to general regime), the depreciation will be performed in proportion to months during which they have the right to deduction of the expenses connected with depreciation and repair of fixed assets.";

2) Item 3:

a) add with the concept "initial cost" of the following content:

"initial cost - acquisition value or creations of accounting object and direct costs on its delivery and reduction in the condition necessary for proper use";

b) state the concept "term of useful functioning" of the following edition:

"the term of useful functioning - the term established according to provisions of the Catalogue of fixed assets in months or advanced in years during which fixed asset depreciation for the purposes of the taxation is charged";

c) state the concept "fixed assets" of the following edition:

"fixed assets - the material property reflected in balance of the taxpayer according to the legislation which is held for use in business activity which cost presumably falls as a result of physical and obsolescence and which useful life exceeds one year and its cost exceeds the limit provided in part (2) article 26-1 of the Tax Code No. 1163/1997";

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